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This paper aims to explore the use and impact of mobile telephony on the performance of companies in developing countries through a nationwide survey comprised of thousands of enterprises representing a true sample of the business sector in Palestine. This paper complements studies that make the linkage between mobile communications and economic activities at micro or enterprise level. It analyses the adoption patterns and rational behind these patterns as revealed by the business owners and managers of Palestinian enterprises.Porter’s value chain is used as a framework to assess the impact of mobile telephony in work processes.

The survey covered thousands of enterprises of all sizes and economic activities,selected to embody a representative sample of the Palestinian business sector. It further explores the views of the owners and managers of these enterprises regarding the use of ICTs.The study reveals that mobile phones have meaningfully enhanced internal processes and the overall value chain. Most notably, mobile phones were effective in bridging the information and connectivity gap businesses in developing countries ordinarily suffer.

The study has also found that small and micro enterprises gain from the use of mobiles the same as what large enterprises do, especially in mainstream operations like marketing and sales, information flow, and provision of customer services. This is happening at the time when there is a huge difference in resources between the two categories of enterprises. The study came to conclude that mobile benefits are not favoring one business sector from the other, in the sense that all business sectors are capable of tailoring mobile phone services to suit their needs

The world is witnessing a new dawn with regard to the potential of information and communication technologies (ICTs) to contribute in the fight against poverty. For the first time, there are now realistic opportunities for inhabitants of remote locations in low-income countries to get connected via ICTs. Farmers, fishermen as well as entrepreneurs in urban areas are rapidly adopting mobile phones as a key tool to advance their commercial activities, and some poor people are finding new livelihoods on the back of this trend. Against this background, the Information Economy Report 2010 focuses on the nexus of ICTs, enterprises and poverty alleviation. Whereas the knowledge base needs to grow considerably, the evidence presented in this Report suggests that more attention should be given by policymakers and other stakeholders to this new set of opportunities.

The Report is organized into five chapters. Chapter I introduces a conceptual framework for the analysis that follows. Chapter II reviews recent connectivity and affordability trends to gauge the degree of access and uptake of different ICTs among the poor. Chapter III turns to the role of the poor in the production of ICT goods and services (the ICT sector). In chapter IV, the focus shifts to the use of ICT by enterprises, with emphasis on those that matter most for poor people, namely small and micro-enterprises in urban and rural areas. Finally, chapter V presents the main policy implications from the analysis.